So Now Banks are Demanding People Explain *Why* They Want to Withdraw "Large" Sums of Money

Mon, Jan 27, 2014 - 1:34am

In case you missed this news on a Sunday.... From the BBC News: HSBC imposes restrictions on large cash withdrawals - "restrictions" as in, they want a reason as well as documentation regarding your intended withdrawal.

Customers of HSBC have been stopped from taking out as little as £5,000, because the bank has been requiring that depositors give them a "satisfactory explanation" of what they intend to use the money for. In order to comply, customers were told in some cases they needed a letter or other form of documentation. For example, a "Peter from Wiltshire" was told he needed to provide "booking receipts" for his travel plans.

From the article: "Belinda Bell is another customer who was initially denied her cash, in her case to pay her builder. She told Money Box she had to provide the builder's quote."

The bank claims it is changing its policy due to customer complaints. The question is, why did they make such a policy in the first place? Can't cover the deposits? Or just the wannabe Big Brother corporate mega-state rearing its control freak head?

On a personal note: I don't have much money in the banking system, and I spread my money across two banks and one credit union. I recently had a problem where the state of California docked one of my bank accounts for a tax payment on a corporation I once co-owned and was shut down over 10 years ago. I thought we (my former business partner and I) had paid all the taxes owed. I realize this is partly my fault due to my aversion to bookkeeping, but I can't believe they took over 10 years to take care of this! The state of California somehow never found my Texas address to notify me of the back taxes, but magically discovered one of my bank accounts and took all the money they wanted out of it without my foreknowledge.

It was easy enough to call them to remove the lien and get on a payment plan, but I was very irritated they did not try to notify me first. Thanks, California, I now have a black mark on my credit report due to your inability to find an address. It turns out they were notifying me at an address I had not lived at since...get this...2001. My California driver's license, which is probably still valid, has my second to last California address on it. I also had been registered to vote at my last California address. It wouldn't be too difficult for them to find me...if they had really wanted to.

Clearly, California has to be desperate for money if it is going after defunct businesses for just a few thousand dollars in back taxes. I half wonder if they wanted to avoid finding me so they could justify taking over my bank account. Banks must also be getting pretty desperate, if they are trying to hold on to their funds as tightly as possible with all of these ridiculous rules and withdrawal limits. The bottom line is, I simply don't trust that any money I put in a bank account is going to be there or be accessible. If the bank doesn't take it, the government will.

I'm speaking to the choir here. You know the score. But I saw this news and wanted to post it up for your chewing fodder.

Stephanie blogs sporadically at a number of websites, including Freeople and Free Thinking Christianity.

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bullion only
Jan 27, 2014 - 2:15am

Early bird catches the worm

Maybe a sign like the popes doves?


Jan 27, 2014 - 2:16am

HSBC said

they didn't want their customers to be victims of fraud. I guess the bank hates competition.

bullion only
Jan 27, 2014 - 2:20am

I'm telling you

I'm telling you sooner or later they are going to replace bank tellers with TSA agents.

You will have to show ID to get into the bank then be groped to go to the teller, then prove you are not a terrorist to get cash out and like Venezuela and Argentina you will be limited to how little you can get and you better have a good reason you need cash in this cashless economy as only terrorist and drug dealers use cash.


and I'll second that

bullion only
Jan 27, 2014 - 2:23am

The banks viewpoint

"You lent us the money, we are not going to pay you interest and we will give it back when we have made enough money to cover our bonuses."

God this system pisses me off. Crash and die already!

Rant over.


Jan 27, 2014 - 3:14am

Shoot me down but is this not

Shoot me down but is this not part of the US hunting down accounts of their citizens to cough up taxes etc owed and threatening banks with penalties/sanctions doing business in The US etc if they do not comply under the guises of tax avoidance/money laundering etc ?

edit or has all that been sorted out now and it's unicorns and rainbow time ?

or is it they just aint got it ?



Too much weirdness going on in this world to the one I was bought up in that's for sure.

Jan 27, 2014 - 5:10am

"the wannabe Big Brother

"the wannabe Big Brother corporate mega-state rearing its control freak head"

This sums it up perfectly. Problem is for them when they get as obvious as this people start waking up quicker.

Theres a war on cash. The power elite dream of a global, electronic, fiat currency controlled by the central banks. Cash must be banned, and the wheels are in motion by many small stages.

Bitcoins and precious metals must be discredited.

I don't think they'll achieve their insidious plans though, too many people are aware of it.

Jan 27, 2014 - 5:17am

Sigh, is it really only a

Sigh, is it really only a mere 2 years ago now.........I think I'm going to miss im.

Ben Bernanke FOMC Statement January 25th, 2012. Translated.
Jan 27, 2014 - 7:10am

Mantis, I used to think the

Mantis, I used to think the same but then I came to the realisation that people have become resigned to it, have become apathetic to it, no longer contemplated it, it was what it was and it will be what it will be. They will get away with it alright, they always do.

That's why Larry Summers and business insider are effectively saying digital currency in t minus 3 years. We all have our lines in the sand though and that line is close for me now.

Jan 27, 2014 - 7:35am

In those days of old

well actually just a few short years ago, we withdrew some significant amounts of cash out our accounts from the group who uses those horse drawn wagons, anyways they asked in a friendly curious sort of manor, what we was up to with all those beautiful stacks of green (c-notes), all I remember telling them in a quick sort of matter of fact way was, "they require cashiers check or cash at the auctions we attend" The response was always "Oh, a , Ok" Oh thats fine sir.

I think their are even more auctions today being that this Obama economy is wringing out just about every nickel anyone ever put in the top drawer to save for a rainy day. Yea they ask for all of your ID, but when they ask you what you need all that cash for, I'll lay odds your quick response of the old auction line will work like a charm.

Jan 27, 2014 - 8:59am

Withdrawing cash

Is not hard, regular trips to the ATM where you withdraw your whole daily allowance does the job (unless you are in the middle of a bank run). No questions asked and in time you get as large a stash of cash as you feel you need under your mattress. Voila, its your money again, out of reach of your unfriendly banks grubby little paws. And you not losing any interest to speak of because the interest rates offered by banks are a joke.

Of course central banks can and do still devalue it, but thats another story.

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